# Agricultural commodity trader responses and the effectiveness of the new EU deforestation proposal | European Forest Institute

> A European Forest Institute policy brief based on interviews with cocoa, palm oil, and soy traders examines how they may respond to the EU deforestation proposal. Traders are likely to supply the EU with deforestation-free products while redirecting volumes still linked to deforestation to markets with laxer rules. The brief suggests the regulation's impact on total forest loss could be limited.

- Date: 2022-09-06 · published 2022-09-06T12:00:00.000Z
- Category: policy · region EU · magnitude low
- Page: https://feedsoft.ai/events/39614-agricultural-commodity-trader-responses-and-the-effectiveness-of-the-new-eu
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

If traders redirect non-compliant volumes elsewhere, EU supply of soy and palm oil may stay adequate, limiting price effects for feed buyers.

## Read by commodity

- SOY: neutral
- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2017-10-24 | [The Chain: EU Proposals for Deforestation-Free Supply Chains Another Step in the Transformation of Agricultural Commodity Trade - Chain Reaction Research](https://feedsoft.ai/events/68516-the-chain-eu-proposals-for-deforestation-free-supply-chains-another-step-in-the.md) | -0.8% | +0.9% |
| SOY | 2026-04-13 | [EU Deforestation Regulation: Early responses in producer countries \| European Forest Institute](https://feedsoft.ai/events/19740-eu-deforestation-regulation-early-responses-in-producer-countries-european.md) | -0.7% | +1.6% |
| SOY | 2026-08-12 | [EU Deforestation Regulation: European Commission provides further clarity for businesses ahead of its entry into force at the end of 2026](https://feedsoft.ai/events/17930-eu-deforestation-regulation-european-commission-provides-further-clarity-for.md) | +4.6% | +12.9% |
| SOY | 2019-07-25 | [European Commission takes action to tackle commodity-driven deforestation, but falls short of committing to stronger regulation and market incentives - Forest Trends](https://feedsoft.ai/events/58113-european-commission-takes-action-to-tackle-commodity-driven-deforestation-but.md) | -3.0% | -3.4% |
| SOY | 2021-12-08 | [The European Commission’s new proposed deforestation regulation - what does it mean for indigenous peoples and forest communities? - Business and Human Rights Centre](https://feedsoft.ai/events/43614-the-european-commission-s-new-proposed-deforestation-regulation-what-does-it.md) | +0.7% | +10.7% |
| PALMOIL | 2017-10-24 | [The Chain: EU Proposals for Deforestation-Free Supply Chains Another Step in the Transformation of Agricultural Commodity Trade - Chain Reaction Research](https://feedsoft.ai/events/68516-the-chain-eu-proposals-for-deforestation-free-supply-chains-another-step-in-the.md) | +0.3% | -0.0% |
| PALMOIL | 2026-04-13 | [EU Deforestation Regulation: Early responses in producer countries \| European Forest Institute](https://feedsoft.ai/events/19740-eu-deforestation-regulation-early-responses-in-producer-countries-european.md) | -1.0% | -0.0% |
| PALMOIL | 2019-07-25 | [European Commission takes action to tackle commodity-driven deforestation, but falls short of committing to stronger regulation and market incentives - Forest Trends](https://feedsoft.ai/events/58113-european-commission-takes-action-to-tackle-commodity-driven-deforestation-but.md) | +0.2% | +8.1% |

## Sources

- efi.int: https://efi.int/news/agricultural-commodity-trader-responses-and-effectiveness-new-eu-deforestation-proposal-2022

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.